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The time has finally come: you’re ready to retire. For many, this means living off savings or social security, but in reality, now that you’re unemployed it’s time you started making real money. Investing after retirement is a great way to continue making income, cover expenses in lieu of a regular paycheck, and stay plugged into the booming American economy.

Social security is drying up

If you plan on retiring any time after the next 20 years, you shouldn’t count on social security funds. A 2014 report estimates that social security will no longer be able to pay full benefits after 2033. This means that those that retire after this demarcation point should expect to supplement federal aid with individual income — such as investments.

Life expectancy is increasing

Clean living, improved healthcare resources, increased social awareness, and many other factors have all contributed to a steady increase in life expectancy over the years. Today, being young at heart means more than ever — retirees can expect to live an additional 15 – 20 years into their twilight years. The average life expectancy today is 80, which is almost a decade older than the to 71 year life expectancy of 1960.

Investing is fun

Many retirees will take up new hobbies to fill the time previously occupied by professional obligations. Why not make your daytime hobby making money? Day trading stocks is the perfect retiree activity because it’s just as complicated as you want it to be. You can trade casually, and pick up some minor gains here or there. Or, go in full bore and make it your new job. After all, investments provide extra money, so have some fun with it.

Delaying social security payments boosts your benefits

Let’s say your investments are performing exceptionally well, and maybe you don’t necessarily need social security yet. Your social security payout increases by 8 percent for every year you delay payments. So if you’ve held off on social security, and it has come time to cash out investments, your federal retirement benefits will be worth far more than usual.

Moving

Want to spend the next chapter of your life in Myrtle Beach? Naples, Florida? Now that you’re retired, you’re free to live anywhere you want — unfettered by professional constraints, the world is your oyster. But there’s one problem: how will you afford it? Your savings account should be preserved for medical expenses, and you already checked the couch cushions for loose change. Well, investments with high yield interest rates or dividend payments are a good way to boost your income and gain a little extra cash.

You earned it

What has decades of penny pinching amounted to if you can’t spend your savings during retirement? Part of the reason you budgeted so carefully in your professional years is to ensure security as you grow old. Well, here you are, and it’s time to tap that sacred savings account. As you assess your finances in old age, consider how much savings you’re willing to gamble on the market — what do you have to lose?

There’s no better time to invest than now

This is not to say that the market is particularly ripe for new investors right now — although 2017 saw record high economic numbers — but more so that anytime is a good time to invest. You can guarantee the market will fluctuate in your 15+ years of retirement, but that’s not the point. As long as you build a portfolio that can bear a bear market, you will be in good shape to weather market slumps. As they say, “don’t play with scared money.”

Grandchildren

Your kids are all grown up, but that doesn’t mean you’re off the hook. As a retired grandparent, you’re in charge of vacations, dinners out, movie nights, and other fun activities with the grandkids. And, you guessed it, one of the best ways to bankroll fun money is through thriving investments. In fact, while it might not be the most exciting prospect for the kid, a safe, slow-maturing investment is a great grandkid birthday gift.

Jumpstart a startup

Are you passionate about the future of tech? Small philanthropies? Artisan dog treats? Whatever your calling may be, there is likely a startup that you can help get off the ground. One study found that 100 million startups try to get off the ground every year, and they need your help. Invest in a cause you care about, and in the process make someone’s entrepreneurial dreams come true.

Broaden your horizons

Now that you’re retired it’s time to read those books you never got around to, learn a new skill, travel the world, and, most importantly, diversify your portfolio. Financial experts suggest that retirees pursue many different types of assets to help offsite potential market volatility.

Travel

For most, vacation tops the list of most anticipated retirement activities. It’s easy to get swept up in fantasies of cold beer and catching rays on the beach, but you you need a way to pay for it. Investments are a good way to compound your savings, and make a little extra vacation money.

Just because you’re retired doesn’t mean you can avoid the taxman — after all, according to Benjamin Franklin, alongside death, taxes are one of the two certainties in life. While you no longer have to pay payroll taxes, you will still pay taxes on social security benefits. Plus, you are required to pay taxes on IRA withdrawals. Tax season can feel extra overwhelming if you are without a reliable source of income, so avoid the April financial crunch and tap investment gains to pay taxes during retirement.

Support a company you care about

If you’re on the verge of retirement you probably had a long, prosperous career. Maybe you jumped around to different positions, or maybe you logged a couple decades at one company. Either way, chances are there is a company you want to be involved with that you never got a chance to work at. Investing in a company is a good way to gain a sense of belonging, and do your part to support a company dear to your heart — even if you never actually worked there.

Stay sharp on market trends

All of the financial benefits of investments aside, investing in the market gives you a reason to care. One of the scariest prospects of retirement is the threat of complacency, so fend off apathy by giving yourself a reason to stay up-to-date. You are far more likely to take a keen interest in economic trends when you have a little skin in the game.
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Josh is an associate content manager at Credit.com. He works with the Credit.com team and leaders and experts in the credit industry to create timely, educational articles that help consumers make informed decisions.

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